Abstract
Knetter uses an ingenious strategy of having period dummies which capture common effects and country dummies which capture institutional effects so that what remains is a coefficient which captures the country specific exchange rate effects of pricing to market. The idea is that the effects of exchange rates on marginal costs have already been controlled through the common factor in the regression so that what remains are the effects of exchange rates that operate via import demand.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1992 Springer-Verlag Berlin · Heidelberg
About this chapter
Cite this chapter
Lawrence, R. (1992). Comments On: Multinationals and Pricing to Market Behavior. In: Klein, M.W., Welfens, P.J.J. (eds) Multinationals in the New Europe and Global Trade. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-76991-7_5
Download citation
DOI: https://doi.org/10.1007/978-3-642-76991-7_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-76993-1
Online ISBN: 978-3-642-76991-7
eBook Packages: Springer Book Archive